New Section 21 & HMO legislation

Hello,

It has been a little while since my last post but that is what happens when you come across AUG/SEP peak market conditions!

Two important changes to take note as below:

Section 21 

From 1 October 2018 all Landlord’s wishing to end a Tenancy by serving a Section 21 Notices MUST use the Form 6A, regardless of when the Tenancy started and whether the Tenancy is fixed-term or Periodic.

Just as a reminder under the Deregulation Act 2015, Landlords and agents wishing to issue their Tenants with a Section 21 notice should:

– ensure they have shared the ‘How To Rent’ guide with Tenants. Download latest version here.

– ensure the property has an up to date Gas Safety Certificate and the Tenants have seen it

– publish the property’s Energy Performance Certificate (except when the property isn’t required to have one) and that the Tenants have seen it

– provide Tenants a copy of their deposit certificate

– and where the property is licensed, provide a copy of the licence to all of the Tenants

You can send all the above documents by email which ensures you have a record. However never to disappoint Govt have thrown in a banana skin as you need to have the Tenant’s permission to send the How to Rent guide by email. I’d suggest that is also obtined by email so it is recorded. Oh the irony!

These requirements technically do not apply for pre-October 2015 Tenancies however it has not been confirmed clearly enough by Govt to be sure. Therefore I think it would be safest to serve the above documents on all pre-October 2015 Tenancies along with the Section 21 Notice as a judge will never throw a case out of court for having too much information, even if they did get out of bed on the wrong side. Better safe than sorry.

New HMO Licensing 

Currently the nationwide requirement for HMOs is:

  • the property is a House in Multiple Occupation (HMO) (occupied by individuals who are not all related to one another); and
  • the property is occupied by five or more individuals forming two or more households; and
  • the property has 3 storeys or more

From 1 October 2018 the 3 storeys aspect will be removed so any Landlord with five or more individuals in their rental property needs to apply for an HMO as soon as possible.

It is estimated this will mean 177,000 rental properties across the UK will now be classed as HMOs. That averages 880 extra licenses per local authority if spread out evenly. Will they have the staff for it?

Mortgage lenders & insurance

If you now need an HMO you must update your lender and insurer once you have applied for the license.

What about minimum room size?

There is no centrally applied minimum room size at this stage although some local authorities do have their own. It is likely to happen in the near future though and while on the one hand it will undoubtedly create issues for Landlords it will also create a level playing field.

In summary

I hope this has been of use and I will be posting regular VLOGS on social media and this site in the coming weeks to keep you up to speed with the industry 🙂

 

If you need any assistance letting your property in Brighton, Hove, Kemptown and surrounding areas or if you just have some general queries please feel free to contact us on +44 (0)1273 646426 or lettings@bishopsullivan.co.uk

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Best Regards,

julian-sig

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